| 1. The Company was incorporated as a Private Limited Company on
27/06/1989 and converted into a Public Limited Company on 16/07/1993.
The Company came out with a Public Issue which opened on 12th July 1994
and closed on 14th July 1994 to finance it's Xee Mail Project.
2. The Company had undertaken the project of setting up an
Electronic-Service Network which has been commissioned. All the
expenses relating directly or indirectly to the Xee Mail Project
including revenue expenses, manpower cost, travelling, conveyance etc.
were capitalised upto the date of commissioning and shown under capital
work-in-progress which were apportioned to respective fixed assets in
the year in which the project was commissioned in that year. The
capital work in progress shown in the current year relates to purchase
of assets and expenses in relation to fax, store and forward project
and on line project which are yet to be commissioned.
3. In the opinion, of the Board of Directors, current assets and loans
and advances are of the value stated, if realized in the ordinary
course of business.
4. Miscellaneous expenditure is amortised over a period of 10 Years.
5. i. Provision for taxation is not made in the accounts as the
Company does not have any taxable income.
ii. Income-tax assessment of the Company has been completed upto
assessment year 1996-97.
6. Estimated amount of contracts to be executed on capital account not
provided for Rs. NIL (net of capital advance)
7. No dividends have been declared by the Company since incorporation.
8. Guarantees given by the banks on behalf of the Company Rs.2,50,016/-
for which the company has placed fixed deposits with the respective
banks of Rs.26,138/- (Previous, year Rs.40,74,016/-. Margin Money Rs.1
,33,620/-)
In view of the announcement of new Internet Policy by Government of
India, the Company had provided for the Licence Fees upto 31-3-98 only.
The Company through ISPAI, of which it is a member, has pleaded against
the imposition of licence fee to DOT. As the issue is under serious
consideration at DOT no licence fee has been provided during the Year.
The Company had given bank Guarantees totalling Rs.35 lac included in
the previous year figures given to Department of Telecommunication
(DOT). The bank Guarantee was issued as a surety for payment of licence
fees to DOT against issuance of licence to operate, E-Mail service. DOT
invoked the Bank Guarantee during the current financial year i.e.,
98-99 which has been incorporated in the secured loan outstanding to
Central Bank of India, Pimpri Branch. The Company has filed a case
against invocation of Bank-Guarantee by DOT in Pune Court, which is
pending. The Company is of a view that DOT should not have charged
licence fees in the first place.
9. The Balances of the debtors, creditors, loans and advances are
subject to confirmation.
10. The Share Application money shown under Current Liabilities is
refundables.
11. In view of the fact that none of the employees of the Company is
covered under the Gratuity Act, no provision on the basis of actuarial
valuation has been made as per the mandatory Accounting Standard 15,
issued by Institute of Chartered Accountants of India.
12. The Company has discounted suppliers bills of Rs.55,38,904 details
of which are as under :-
Name of the Party Date Amount
Goods Earth Organics Ltd. 5/9/95 30,10,034/-
Business India Television Ltd. 18/7/95 25,28,870/-
On the due date both the parties defaulted in honouring their
commitments. The Company has initiated legal proceedings as a part of
recovery process.
In its attempt the Company has been able to recover Rs.22,60,603/- from
Business India Television Ltd. However, in case of Good Earth Organics
Ltd., the Company has initiated criminal as well as civil proceedings.
The Gujarat High Court has appointed a provisional liquidator for the
company. A press release issued last year indicated that the Director
of Good Earth Organics Ltd. were absconding and the case was being
investigated-by the crime branch.
13. The company has obtained a secured term loan from Sangli Bank Ltd.
of Rs.24.55 Lacs. In view of the Bank outstandings becoming overdue,
the Bank has initiated necessary process through the legal route. The
balance confirmation from the Bank of amount outstanding as on 31/3/99
is not available.
14. The Company has a paid up capital of Rs.12.60 Crores, which
requires the appointment of a whole time Secretary under the provisions
of Section 383A. The Company did not have a whole time Secretary during
the financial year 1998--99 but had retained a practicing Company
Secretary to take care of secretarial matters.
15. The Company owes the following amounts to Companies in which,
Directors are interested :
Datapro Electronics (P) Ltd. Rs. 97,52,706
Datapro Infoworld Ltd. Rs. 40,60,948
The Company does not owe any money exceeding Rs. 1,00,000/- to any
concern, being a Small Scale Industrial Undertaking.
Debtors includes Rs. NIL due from the Companies in which Directors are
interested (Maximum balance due from the Company during the year is Rs.
NIL).
16. Previous year's figures have been regrouped/rearranged whenever
necessary to conform with the current years classification.
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